CA AB657

Removes "candy" from the list of tax-exempt food products under California sales and use tax law, contingent on voter approval of a constitutional amendment.

Requires retailers to segregate gross receipts from candy sales on sales tax returns filed with the California Department of Tax and Fee Administration.

Creates the Candy Tax Fund to receive an amount equal to total gross receipts from candy sales reported annually, with all funds distributed to the Child Welfare Grant Program Fund.

Establishes the Child Welfare Grant Program providing annual grants to qualified residents (joint filers earning up to $150,000 or individual filers earning up to $112,000) with dependent minors: $3,000 per child under 6 years old and $2,500 per child ages 6-17.

Makes the candy tax provisions and grant program operative only if Section 1 (constitutional amendment regarding candy sales tax) is approved by voters and an unspecified Assembly Constitutional Amendment of the 2023-24 session is also approved.